Aerie Pharmaceuticals, Inc. (AERI): Alive and Kicking?

If you can handle volatility, Aerie Pharmaceuticals, Inc. (NASDAQ:AERI) is the stock to watch now. The stock closed lower on 07 November. The shares dropped -3.52 points or -6.45 percent at $51.03 with a light trade volume of 2.88 million shares. After opening the session at $54.95, the shares went as high as $56 and as low as $47.69, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.38 billion and now has 46.58 million shares outstanding. Aerie Pharmaceuticals, Inc. (AERI) stock has lost -4.1 percent of market value in 21 trading days.

AERI stock has a trailing 3-year beta of 0.98, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$4.96 a share in the trailing twelve months. The stock’s value has fallen -14.59 percent year to date (YTD) against a decline of -21.19 percent in 12 month’s time. The company’s shares still trade -31.73 percent away from its 1-year high of $74.75 and 8.45 percent up from 52-week low of $47.06. The average consensus rating on the company is 1.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Aerie Pharmaceuticals, Inc. (AERI) will probably climb 67 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $105-month high price target. This represents a whopping 105.76 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $86, which represents a return potential of 68.53 percent when compared to the closing price of the stock of $51.03 on Wednesday, November 07. The lowest price target for the stock is $77 — slightly more than 50.89 percent from AERI’s current share price.

History has shown that shares in Aerie Pharmaceuticals, Inc. have gone down on 11 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings.

Let’s take a look at some insider activity at Aerie Pharmaceuticals, Inc. (NASDAQ:AERI) and see the pattern. The earliest insider trade took place on 11/01/2018. Kopczynski Casey C. parted with a total of 11 thousand shares of company at average share price of $53.87. The total for the sales was set at $592.57 thousand. After this transaction, the Chief Scientific Officer account balance stood at 128.74 thousand shares. The stock lost -5.27 percent since that insider sale. On 10/01/2018, Kopczynski Casey C., Chief Scientific Officer, sold 11 thousand shares at a price per share of $60.56. This removed 666.16 thousand shares from the insider’s fortune and the stock saw a -15.74 percent retreat in value since the news became public. This transaction left 136.52 thousand shares in the Chief Scientific Officer account.

On 09/27/2018, CFO Rubino Richard J performed a sale transaction worth $4.01 million. This sale at $60.23 each has eliminated 66.61 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -15.27 percent decrease since the transaction was reported. The insider now is left with 317.13 thousand shares remaining in the account. Rubino Richard J, who performs the CFO job, sold 0 thousand shares for $0.12 thousand. The disposal occurred on 09/14/2018 was priced at $60 per share. The share price plunged -14.95 percent since the reporting date. Rubino Richard J now left with a stake of 383.74 thousand AERI stock worth $19.58 million after the insider selling.

The stock is currently hovering around the first support level of $47.15. Below this, the next support is placed in the zone of $43.26. Till the time, the AERI stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 39.89 on daily chart, which may remain a cause for comfort. If the price breaks below $43.26 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $55.46 mark may result into a pull-back move towards $59.88 level.

Further, it is sporting a 990.41 on the Price-to-Sales ratio. Compare this with the industry average P/S of 183.1. 97.6 percent is the gross profit margin for Aerie Pharmaceuticals, Inc. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.